Facing heat over alleged misuse of electric vehicle subsidies, a group of seven electric two-wheeler manufacturers have reportedly urged the Indian government to look at the possibility of asking the customers to pay back excess rebates they have availed on the purchase of electric scooters and motorcycles, reports PTI. This means if you have availed subsidy during the purchase of an electric two-wheeler, you may have to return it to the manufacturer.
The report says that in a letter to the Ministry of Heavy Industries (MHI), the Society of Manufacturers of Electric Vehicles (SMEV) has suggested that the customers who have taken subsidies for purchasing electric two-wheelers can be asked to return these to the affected OEMs. This comes as the Indian government has sought ₹469 crore from seven electric two-wheeler manufacturers including major OEMs like Hero Electric and Okinawa Autotech, as they have been allegedly claimed incentives while not complying with the FAME 2 scheme norms. Other companies that have been asked to refund the subsidies are Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.
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SMEV chief Sanjay Kaul has reportedly written the letter suggesting that the amount be taken from the benefitted customers. “This is about the subsidies your department has claimed back from OEMs on the retrospective basis: And this also holds for the ₹1,200 crores that the OEMs claim remains un-reimbursed,” he reportedly wrote. He also reportedly wrote to the government that if a customer has received a discount over and above the correct price, it is incumbent on him or her to return the excess, even if the correction comes retrospectively.
During an investigation by the Ministry of Heavy Industries, it was revealed that the abovementioned electric two-wheeler manufacturers have availed fiscal incentives under the FAME 2 scheme by violating the norms set by the government. The scheme rules stated that incentives were allowed to produce electric vehicles by using made-in-India components, but the investigation revealed that these seven companies used imported components in their products and availed subsidies for them.
First Published Date: 30 Jul 2023, 10:22 AM IST